I’m new to this sub. Why is there a housing shortage when the birth rate has been declining considerably? The national news just said we need 5 million more homes to satisfy the current need. I’m genuinely curious. Thanks!
In: Economics
The actual explain like I’m five answer is that housing is treated as an investment. Many People buy it to earn more money, and because of that they want the price to increase as much as possible. There is no situation where these people will want the price of housing to go down or even stay the same. Ever.
The Second half of the situation is that there’s a limited amount of land in the world, and that makes it a precious resource whose price will only increase over time.
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